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Gov't to decide on early termination fee exemption for SKT users by end of June

Published: 09 May. 2025, 17:38 Updated: 09 May. 2025, 17:58

Travelers line up to change their SIM cards at the SK Telecom roaming center in the departure hall of Terminal 1 at Incheon International Airport in Incheon on May 4. [YONHAP]

The government is expected to decide by the end of June whether to exempt SK Telecom (SKT) users from early termination fees due to the recent hacking incident involving SIM cards.

“We cannot determine whether termination fees will be waived until the public-private joint investigation team concludes its probe,” Yoo Sang-im, Minister of Science and ICT, said during a monthly briefing held Friday at the Seoul Government Complex in Jongno District, central Seoul. “The investigation period is expected to last up to two months from the end of April, so the results will likely be available by the end of June.”

The joint investigation team, currently probing the cause of the breach, has completed three rounds of inspections on 33,000 potentially compromised servers and is now conducting a fourth round.

Yoo said he would receive an internal briefing from the investigation team this week or early next week and would then decide when to disclose further findings to the public.

According to Clause 43 of SKT’s terms and conditions, termination fees are waived “if termination is due to reasons attributable to the company.”

Regarding the term “attributable,” Yoo said, “We must closely examine everything in detail, including how thoroughly the company fulfilled its security responsibilities and how the hackers technically penetrated the internal network.”

SK Telecom CEO Ryu Young-sang, center, answers questions on the recent SIM hack at the National Assembly building in Yeouido, western Seoul, on May 8. [YONHAP]

“The termination fee issue could be significant enough to impact SKT’s very survival, so we are approaching this matter with extreme caution,” said Yoo. On the legal review conducted by four external law firms commissioned by the ministry, he explained that the interpretation is “not clearly a yes or no,” and must be considered alongside the investigation team’s findings.

SKT maintains that it is too early to make a decision on waiving termination fees.

“We will refer to the Ministry of Science and ICT’s legal interpretation and consult with the board and the Customer Trust Recovery Committee before deciding whether to waive the fees, but the matter is too significant for an immediate decision,” Ryu Young-sang, CEO of SKT, said during a National Assembly hearing the previous day.

“Around 250,000 subscribers have left since the hacking incident, and if termination fees are waived, we expect that number to rise more than tenfold to 2.5 million,” said Ryu. “Taking into account projected revenue and termination fees over the next three years, we estimate losses of more than 7 trillion won [$4.99 billion].”

Ryu Young-sang, CEO of SK Telecom, speaks as a witness during the National Assembly’s Science, ICT, Broadcasting and Communications Committee on April 30. [JOONGANG ILBO]

SKT plans to convene the customer trust recovery committee to assess the issue of termination fees, discuss potential compensation, and evaluate the relationship between the hacking and user damages.

An information security innovation committee, whose formation was announced by SK Group Chairman Chey Tae-won on Wednesday, will begin security review meetings across all SK affiliates starting Saturday.

Following the SIM hacking incident, the ICT Ministry shared information about malware found on SKT servers with over 6,000 private companies and government agencies and requested urgent security checks.

SK Group Chairman Chey Tae-won bows in apology during a press briefing held at SK Telecom's headquarters in Jung District, central Seoul, on May 7. [JOINT PRESS CORPS]

Voice phishing and smishing schemes exploiting the incident have become increasingly active.

“Text messages attempting to install malicious apps or steal sensitive information have been spreading,” said the Korea Internet & Security Agency. These messages include phrases like “SKT USIM hacking” and “infected with malicious app” and often say, “Your phone’s USIM has been hacked” or “They say we need to replace Mom’s USIM; reply after reading this text.”

These messages prompt recipients to install remote control apps under the pretense of providing “remote diagnostic support,” prompting heightened vigilance due to the ongoing crime attempts.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY EO HWAN-HEE [[email protected]]